September 2008 

The negative news on the financial markets did also have a negative impact on investment funds in September. The fund groups' AUM fell from DKK 857bn. to DKK 781bn. Part of the decline is due to redemption of funds shares. Institutional investors sold fund shares for DKK 14bn. and private investors sold fund shares for DKK 5bn. Investors were paid dividends of almost DKK 1bn. primarily in bond funds. The total capital loss was DKK 55bn. which primarily affected equity funds.

Equity funds thus had a hard month. The Danish, Nordic, Eastern European and Latin American equity funds showed the worst performance in general. They had losses in the typical funds amounting to 19 per cent. The loss was lower in the biggest category - global shares - which was almost 9 per cent.

The Danish bond funds did also have some negative returns with losses of approximately ½ per cent in the typical short fund and 1 per cent in the typical long fund. However, more funds had positive returns. Foreign bond funds showed bigger losses especially emerging market bonds and corporate bonds with losses of typically 5 - 6 per cent. The performance of these bond funds often follows the movements on the equity markets.